Cost of acquisition of capital assets

This query is : Resolved

Siddharth Gupta (Querist)
Follow

09 August 2012 Sir/Mam

Can interest payable on loan taken for purchase of a house property (which is a deduction permissible under section 24 of House Property income) be added to cost of acquisition of a house property for the purposes of capital gains?

If not, then why the principal repayment is allowed as deduction u/s 80C and also allowed to be treated as the cost of acquisition?

CA VISHNU GAVKARE

CA VISHNU GAVKARE (Expert)
Follow

10 August 2012 Dear Siddharth,
There is a difference between Capital and revenue Expenditure/Revenue.Further cost up to the asset is ready to put to use can be capitalized hence payment of stamp duty is allowed as deduction u/s. 80c. Interest on loan taken is revenue item and allowed as deduction u/s 24. Person can not avail two or more benefits of the same amount. as per provisions interest up to the date of completion of house property shall be accumulated and will be allowed as deduction in five equal installments. This means benefit of interest is allowed under sec 24 hence can not be taken again by adding the same to the cost of the asset.
further cost of house property and loan taken to finance are different transaction. deduction of loan is allowed to promot the savings whereas deduction of cost is allowed because it is an expenditure necessary to earn income.

Siddharth Gupta

Siddharth Gupta (Querist)
Follow

10 August 2012 Thank you very much Sir for your valuable reply..

Prakash Kochar

Prakash Kochar (Expert)
Follow

12 August 2012 Line No. 8 should be "can "Not" be taken again....
Probably word Not remained to be typed.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

hitesh chandwani

NICKOONJ VANANI

Mukesh Singh

Sharad Jain

jagadheswar goud

Subscribe Now

Cost of acquisition of capital assets

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final

Article Assistant

Associate CA